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Hero Honda falls on JV termination report

December 15, 2010

A worker cleans a Hero Honda logo inside its showroom in Hyderabad April 19, 2010. REUTERS/Krishnendu Halder/Files

Shares in Hero Honda dropped as much as 9 percent on Wednesday, after a TV news channel reported the board of its Indian partner has approved the termination of the joint venture with Honda Motor.

Hero Corporate will acquire Honda Motor’s 26 percent stake in Hero Honda, for $1 billion to $1.2 billion, the channel said citing unnamed sources.

Shares in the company closed 5.4 percent lower at 1,621 rupees with 0.6 million shares.

Hero Honda shares have dropped over 15 percent so far this month. Do you see the counter dropping further?

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